EC’s Valdis Dombrovskis urges Romania to stay on fiscal consolidation path

European Commissioner for Economy and Productivity Valdis Dombrovskis said in Bucharest on October 28 that Romania must adhere to its fiscal consolidation trajectory to ensure market stability and continued access to European funds. He spoke alongside Romanian Prime Minister Ilie Bolojan at a joint press conference.

“The scope and nature of the measures taken correspond to the efforts to bring Romania back into line with what is necessary. We estimate the deficit to be 8.3%, and it is important that the deficit target for 2026 must be respected in order to ensure the financial stability that has been achieved and to correct the excessive deficit by 2030,” Dombrovskis stated.

His estimate was close to the 8.4% figure cited by the Romanian Government and reiterated minutes later by Ilie Bolojan.

Dombrovskis emphasized that Romania’s access to international capital markets and its ability to sustain investment depend on maintaining fiscal discipline.

He added that the European Commission will assess by the end of November whether Romania is complying with the recommendations under the excessive deficit procedure (EDP).

“If the evolution is positive, the Commission will be able to avoid suspending European funds,” he said.

Romania submitted its updated progress report on October 15, explaining the revision of this year’s deficit target from 7% to 8.4% of gross domestic product (GDP) and setting a 6% target for 2026. The report was due in April but was delayed amid political changes and ongoing consultations with Commission experts.

Prime Minister Bolojan confirmed that the Government’s targets remain at 8.4% of GDP this year and 6% in 2026. He said the next meeting of the Economic and Financial Affairs Council (Ecofin), scheduled for November 13, will review Romania’s performance under the EDP.

Bolojan added that all budgetary measures with an impact on next year’s fiscal planning must be enacted in November. These include laws containing new fiscal provisions and potential changes to local administration financing. While the draft law on magistrates’ pensions has a limited fiscal impact, its adoption would unlock EUR 231 million under the National Recovery and Resilience Plan and pave the way for broader reform of Romania’s special pension schemes.

(Photo source: Gov.ro)